New unit to sniff out bad estate agents

Watchdog's inspection and compliance section to ensure property firms follow rules

The Straits Times - October 19, 2011
By: Daryl Chin

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THE Council for Estate Agencies (CEA) has formed a new section to sniff out wrongdoers and enforce compliance with its rules.
It will also release more practice guidelines and prosecute errant property agents as part of its efforts to toughen up the regulatory regime introduced last year.
Executive director Chionh Chye Khye revealed the plans for the year ahead at the inaugural seminar for key executive officers, which was held yesterday at the HDB Hub in Toa Payoh.
The CEA, which started work in October last year, is part of the Government's bid to raise the professionalism of the real-estate industry through regulation and disciplinary powers.
The new inspection and compliance section will carry out checks to ensure firms adhere to the CEA's rules on advertisements, handling complaints and the maintenance of proper records, for example.
A guide called the Professional Service Manual is also in the works. This will lay down guidelines for the work that estate agents do.
So far, the CEA has already issued three sets of guidelines dealing with agreement forms as well as advertising.
'Although the CEA has formulated the Code of Ethics in its regulations, there is a need to further define clearly what is a professional and ethical practice,' Mr Chionh said.
By the end of last month, the CEA had received a total of 1,239 complaints and issued 130 warning letters.
It has taken one person to court for acting as a property agent without being registered, and plans to prosecute several more in the coming months for breaching the Estate Agents Act.
Speaking at yesterday's event, Minister of State for National Development Lee Yi Shyan revealed a nationwide survey to gauge the public perception of estate agents. It will involve more than 4,000 respondents and be conducted by the year end.
'These findings will form a baseline and guide the CEA in industry development and consumer education,' said Mr Lee, who is also Minister of State for Trade and Industry.
He also emphasised the importance of professionalising the sizeable real-estate industry, as its effects are far reaching.
Last year alone, commissions earned from property transactions amounted to more than $1.25 billion.
There are currently about 33,000 property agents registered with some 1,500 firms here.
'Many Singaporeans turn to real-estate agents for professional help when buying and selling their properties,' said Mr Lee. 'However, prior to the formation of the CEA, agents and salespersons operated in an unregulated environment. Incidents of malpractices have marred consumers' experiences.'
Comparing it to other sectors, he said the real-estate industry could take a leaf out of the book of the medical profession, which has strong ethical and professional standards, as well as the banking sector, which is customer-centric and has robust consumer feedback systems.
Mr David Huan, key executive officer of Rainbow Cottage, which employs 60 agents, said he has waited more than 15 years for the industry to be regulated. He added that overall, he thinks the CEA is moving in the right direction.
'There is some unhappiness on the ground because some firms believe the CEA protects consumers' interests more, but we were assured that it will remain objective. At the end of the day, I believe the council exists for the good of the overall market,' he said.
He added that consumer education also plays a vital role, as he believes some complaints are made maliciously and without grounds.
'Buyers and sellers must remember that there is no fixed price tag in real estate, everything is negotiable. They need to understand that one cannot always get the best price, and should not complain needlessly if the property is in line with market value.'
To give a helping hand to smaller agencies, the CEA has met the Infocomm Development Authority, as well as industry associations such as the Institute of Estate Agents, to discuss infocomm solutions at affordable costs.
As talks are in the preliminary stages, there are no further details now

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